Quick answer: The business submits accurate company, revenue, ownership and funding-need information.
Key takeaways
- MCA structures vary by provider and contract.
- Revenue, bank activity and existing obligations matter.
- Compare total payback and payment timing, not just approval amount.
- Approval, pricing and funding speed are not guaranteed.
Step 1: request capital
The business submits accurate company, revenue, ownership and funding-need information.
Step 2: review revenue and bank activity
Providers may review deposits, average revenue, existing withdrawals, returned items and negative balances.
Step 3: review a proposed structure
A proposal may state advance amount, purchased amount, factor rate, payment method, frequency, fees and other terms.
Step 4: verification
The business may need to verify ownership, identity, bank information, business status or use of funds.
Step 5: funding and remittance
After documents and agreements are complete, funds may be disbursed. Actual timing varies and is never guaranteed.
Questions to ask before moving forward
- What is the exact net amount deposited?
- What is the exact total payback?
- How often is money withdrawn?
- What happens if revenue falls?
- What are payoff, UCC and default terms?
Source standards: See our Sources & Standards page. Actual provider agreements and current law control individual transactions.